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Sunday, April 14, 2013

DLF sells 150 mw wind farm for Rs280 crore

This story first appeared in DNA Money edition on Friday, Feb 1, 2013.

Moving closer to its goal of exiting non-core businesses, realtor DLF has sold its 150 mw wind turbine project in Gujarat to a unit of Bharat Light & Power Pvt Ltd, netting Rs 282 crore, minus liabilities.

Under the deal, BLP Vayu (Project 1) Pvt Ltd would take over the wind turbines in Kutch on ‘as in where in’ basis via slump sale.

Industry sources said the deal value is around Rs500 crore as BLP Vayu is also taking over liabilities and relevant long-term loans of Rs 215 crore.

Sriram Khattar, senior executive director, DLF, said, “We are well on way to get north of Rs 800 crore through sale or transfer of our entire wind turbine projects. Negotiations are on for the balance projects and we hope to close them soon.”

DLF, along with wholly owned subsidiary DLF Home Developers, had 227 mw wind turbines in four states.

The BLP Vayu deal leaves it with three sites – Rajasthan (34 mw), Tamil Nadu (33 mw) and Karnataka (11 mw). It is not clear if the remaining projects will also be acquired by BLP Vayu or there are other bidders as well.

Industry experts said as the wind turbines are located in different locations, valuations will have to be different.

“I’d expect the balance projects to be valued in the same ratio, give or take 5-7%,” said an analyst. Aashiesh Agarwaal, research analyst, Edelweiss Securities, said the deal is a positive as DLF is currently saddled with a huge debt of Rs 21,200 crore.

“Consummation of the wind power sale, along with Aman Resorts sale, would contribute Rs 2,100 crore towards debt reduction. The closure of the deal would bring total divestments in fiscal 2013 to around Rs 5,240 crore as against its guidance of Rs 5,000 crore. 

Divestment of the balance wind power units, at advance stages of negotiations, is expected to generate around Rs 250 crore,” said Agarwaal in a company note. “The deal is among the last of the assets lined up for monetisation,” he noted.

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